ISMA seeks nod for immediate export of 20 lakh tonne of sugar

In the current 2011-12 marketing year starting this month, the sugar production is pegged at 260 lakh tonnes based on the ISMA’s projection and 246 lakh tonnes as per the food ministry’s estimates

New Delhi: The Indian Sugar Mills Association (ISMA) has urged the government to immediately allow exports of at least 20 lakh tonnes of the sweetener to improve their cash flows for making payment to cane farmers, reports PTI.

Top ISMA officials met food minister KV Thomas last week and made a presentation on the overall scenario of the sector.

In the presentation that touched upon export strategy, ethanol pricing and reforms in the sector, ISMA pointed out that cash flow situation is ‘very tight’ in both private and co-operative mills and therefore “large export window was needed at the start of the (2011-12) season”.

During 2010-11 marketing year ended last month, the government had allowed exports of 15 lakh tonnes of sugar under Open General Licence (OGL) in three equal tranches.

“Export of over 40 lakh tonnes is required (in the current 2011-12 marketing year). At least 20 lakh tonnes OGL export permission is required immediately... small tranches of exports will not help this time,” the presentation said.

ISMA has even proposed to the government that additional exports could be allowed subject to a condition that mills would have to import similar quantities in case of shortages.

The industry body has noted that maximum cash would be required between November 2011 and March 2012 as during this period 90% of sugarcane are being crushed and mills need fund to make payments to cane farmers.

India, the world’s second largest sugar producer after Brazil, resumed exports of sweetener from last marketing year after the country’s sugar output exceeded the annual domestic demand after a gap of two years.

Sugar production rose to 243 lakh tonnes in 2010-11 marketing year from nearly 190 lakh tonnes in the previous year. The annual domestic demand is 215 lakh tonnes.

In the current 2011-12 marketing year starting this month, the sugar production is pegged at 260 lakh tonnes based on the ISMA’s projection and 246 lakh tonnes as per the food ministry’s estimates.

“At government estimates of sugar production of 246 lakh tonnes, there is still surplus of 33 lakh tonnes,” ISMA said, while making a case for allowing immediate exports.

User

Govt approves 21 textile parks costing Rs2,100 crore

Six of these parks would come up in Maharashtra, four in Rajasthan, two each in Tamil Nadu and Andhra Pradesh, one each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh, Karnataka, Jammu & Kashmir and West Bengal

New Delhi: The government on Thursday said it has sanctioned setting up 21 of integrated textile industrial parks with world class infrastructure in nine states involving a total development cost of Rs2,100 crore, reports PTI.

The new textile parks, to be set up under public-private partnership, would attract an overall industry investment of over Rs9,000 crore generating employment of four lakh workers, according to an official statement issued here.

The scheme for the integrated textiles parks would be implemented within 36 months, it said, adding the government would finance common infrastructure with a subsidy of up to Rs40 crore for each of the textiles enclaves.

Six of these parks would come up in Maharashtra, four in Rajasthan, two each in Tamil Nadu and Andhra Pradesh, one each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh, Karnataka, Jammu & Kashmir and West Bengal.

Commerce and industry minister Anand Sharma, who also holds the additional charge of the textiles ministry, approved the sanctioning of the parks.

He cleared the proposals as chairman of the project approval committee, which examined 55 cases in all.

“The sanction of new textiles parks would catalyse significant additional investments with industry utilising the benefits both under the scheme for integrated textiles parks and under the Technology Upgradation Funds Scheme (TUFS),” the statement said.

The government has enhanced the allocation under TUFS from Rs8,000 crore to Rs15,404 crore under the 11th Plan. The product mix in these parks would include apparels, hosiery, silk, processing, technical textiles, carpet and powerloom.

The government would invite bids for the lead investors heading the Special Purpose Vehicles for implementing the projects, the statement said.

User

Food inflation soars to over 6-month high of 11.43%

“With vegetable prices unlikely to ease until after the festive season, food inflation may remain elevated in the remaining weeks of October,” ICRA economist Aditi Nayar said

New Delhi: Food inflation soared to over six-month high of 11.43% for the week ended 15th October, as prices of vegetables, fruits and milk went through the roof, hitting the common man, reports PTI.

While the vegetables became 25% costlier on an annual basis, fruits grew dearer by 11.96%, milk by 10.85% and eggs, meat and fish by 12.82%, as per the food inflation data released on Thursday.

Food inflation, as measured by Wholesale Price Index (WPI), was at 10.60% in the previous week.

This double-digit inflation comes on top of a very high level of price rise recorded in October last year, when it stood at 14.20%—already a ‘high-base’ comparison.

The last time that food inflation stood this high was on 9th April when it was recorded at 11.53%.

According to the data, even pulses and cereals, which had remained subdued in recent months, have started catching up and became expensive by 9.06% and 4.62%, respectively on annual basis.

“The rising food inflation is a serious matter. However, we expect the rate of price rise to come down in near future when the fresh products flood the markets,” Crisil chief economist DK Joshi said.

However, onions became 18.93% cheaper and prices of wheat and potatoes were also down 0.95% and 0.45%, respectively, year-on-year during the week under review.

Meanwhile, inflation in overall primary articles stood at 11.75% for the week ended 15th October, compared to 11.18% in the previous week.

Inflation in non-food articles, including fibres, oil seeds and minerals, was recorded at 7.67% during the week ended 15th October, as against 8.51% in the previous week.

Fuel and power inflation stood at 14.70% in the week under review, compared to 15.17% in the week ended 8th October.

According to experts, the upsurge in food prices is likely to exert further pressure on the government and the Reserve Bank of India (RBI) to tackle the situation expeditiously.

“With vegetable prices unlikely to ease until after the festive season, food inflation may remain elevated in the remaining weeks of October,” ICRA economist Aditi Nayar said.

Headline inflation, which also factors in manufactured items, has been above the 9% mark since December 2010. It stood at 9.72% in September this year.

The RBI has already hiked interest rates 13 times to tame demand and curb inflation.

“Rate hikes did not seem to have the desired affect, as seen in the high headline inflation. Issues of supply constraint have to be addressed,” Crisil’s Mr Joshi said.

In its second quarterly review of the monetary policy earlier this week, the RBI had said that high inflation is likely to persist in the next couple of months before moderating as falling global commodity prices so far has been offset by rupee depreciation.

It projected headline inflation to moderate to 7% by March 2012.

“Food inflation is likely to stay elevated due to demand-supply mismatches in non-cereals and large MSP revisions,” the RBI had said, adding that the real wage inflation has extended into first quarter of the fiscal.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)